Throughout the history of money, two simple facts have remained unchanged. A diversified portfolio is more secure than an undiversified one and gold is a good shield against value erosion.

For generations, people have understood the value of gold as a buffer against financial instability and inflation. Unlike most other assets, gold tends to retain its value over the long term. Historic trends show that gold values bear a low correlation to the market changes that dramatically impact other assets. Gold has therefore helped bolster people’s savings against the effects of unpredictable events. It can serve the same function in your retirement savings plans.

Placing gold in your RSP also allows you to trade the metal on the spot market and take immediate advantage of favorable market movements.

In Canada, you may place gold in any of 15 different account types that include registered retirement savings plans (RRSPs), tax free savings accounts (TFSAs), individual or family registered education savings plans (RESPs), life income funds (LIFs) and registered retirement income funds (RRIFs). Gold purchased in RSP accounts must be funded in Canadian dollars.

To qualify for inclusion in your RSP, a gold product must be pure (.9999 fine) and be produced by the Royal Canadian Mint. Currently, 1 oz Canadian Gold Maple coins and gold bars produced by the Mint are admissible in an RSP.

Both of these classes of products are manufactured to the highest standards by the Royal Canadian Mint, a Crown Corporation owned and backed by the Government of Canada. Kitco Metals Inc., a bullion dealer with an international reputation and over 30 years’ standing, is the sole supplier of these gold products to Questrade Inc. Questrade was the first brokerage in Canada that allowed people to directly place gold bullion in their RSPs.

When you choose to place gold in your RSP, you deal with three market-leading firms and are assured of putting your heard-earned money into a product of impeccable quality and value.

Because Kitco Metals Inc. is not a financial service company, we do not provide any services related to RSPs. However, our customers can deal with Questrade Inc. for their RSP-related needs. Kitco supplies all the metal for Questrade’s gold RSPs.

Questrade is the first Canadian broker to offer individuals the option of holding gold in their RSPs. Founded in 1999, this Canadian-owned and operated company is the fastest-growing online brokerage in the country. Questrade’s stated mission is to give Canadians the “tools and information they need to achieve financial independence.” In 2009 and 2010, the company was ranked number one for growth of assets and trade volume by the Investor Economics' Retail Brokerage Report.

Questrade’s procedures for setting up a gold RSP are simple and quick. The company also charges no annual fees, opening fees or inactivity fees and an account can be opened with as little as $1,000.

Questrade is registered as an investment dealer with the Investment Industry Regulatory Organization of Canada (IIROC). The company is also a member of the Canadian Investor Protection Fund (CIPF). As such, Questrade subscribes to and maintains the highest industry standards and its customers enjoy several levels of protection.

Furthermore, gold placed in an RSP through Questrade is stored under the most stringent security measures in the vaults of the Royal Canadian Mint. The Government of Canada is accountable for every ounce of gold held in the Mint’s vaults. Your hard-earned money is therefore safe — managed by a leading financial institution and physically protected by a publicly-owned Crown Corporation.

Before making any decision, please be aware that:

• Kitco is not a financial or taxation advisor, so we cannot give you any investment advice. We recommend that you consult a qualified tax and/or financial advisor before making any financial decisions.
• Placing precious metals in your RSP carries an element of risk. Your financial advisor would be the best person to consult for a better understanding of this risk.
  
  

RSPs are governed by official Canadian government rules and regulations, which are subject to change. These rules and regulations are too numerous to cover on this website. Please see the official Canada Revenue Agency website for more information on the laws that govern RSPs.